Independent · CPA & CFA-led
Independent, credentialed guidance on reverse mortgages for Canadian homeowners 55 and older. We compare every lender, model the decision against your alternatives, and tell you plainly whether it makes sense for you.
Is this you?
A reverse mortgage isn’t for everyone, but for the right homeowner it’s a powerful, deliberate way to fund retirement without selling or downsizing.
You’re 55+ and own a home with real equity that you’d rather not leave.
Access tax-free cash for income, renovations, care, or family, with nothing to repay each month.
Access tax-free cash for income, renovations, care, or family, with nothing to repay each month.
What it can do
Access a portion of your home's value. The amount depends on your age, home, and lender.*
You stay on title and can never be asked to leave while you meet your obligations.†
Proceeds are a loan, not income, so they generally don't affect OAS or GIS.*
Nothing is repaid until you sell, move out long-term, or pass away.
A No Negative Equity Guarantee means you or your heirs never owe more than the home's fair market value.†
Take a lump sum, scheduled advances, or a combination, structured around your goals.
Why AAREA
AAREA Private Lending is led by a Chartered Professional Accountant and CFA charterholder, a depth of financial expertise that’s rare in the mortgage world. Here’s what that changes for you.
Canada has four reverse mortgage lenders, each with different rates, limits, and features. We compare all of them and recommend what’s right for you, not what’s convenient for us.
Reverse mortgage, line of credit, or selling. We run them side by side, including the long-term impact on the equity your family keeps.
If a reverse mortgage isn’t your best option, we’ll say so. Our reputation depends on advice you can trust, not a sale.
Big decisions deserve a full conversation. We’re glad to sit down with your adult children and other advisors, at your pace.
How it works
We learn your goals. We answer your questions and understand what you’re trying to achieve.
We compare lenders. We show you what you’d qualify for and how the options compare.
Received your way. As a lump sum, scheduled advances, or a combination.
We learn your goals. We answer your questions and understand what you’re trying to achieve.
How it compares
| Reverse mortgage | Home equity line of credit | Sell & downsize | |
|---|---|---|---|
|
Monthly payments |
None required |
Interest payments required |
Not applicable |
|
Keep your home |
Yes |
Yes |
No |
|
How you qualify |
Age & equity, not income |
Income-tested |
Not applicable |
|
Can the lender call the loan? |
Not if obligations are met |
Yes, it’s callable |
Not applicable |
|
Cost of leaving your home |
None |
None |
Commissions, transfer tax, moving, the emotional cost |
You won’t hear this from a lender’s own marketing. A reverse mortgage accrues interest and reduces the equity left to your estate, a real trade-off worth weighing. It may not be your best move if:
If any of these describe you, we’ll tell you, and point you toward the option that fits. That honesty is the whole point.
Free · No obligation
Tell us how to reach you and we’ll prepare a free, no-obligation estimate, comparing every lender, and answer any questions. No pressure, ever.
Prefer to read first? Ask for our plain-language Homeowner’s Guide.
It’s a loan secured against your home, for homeowners 55 and older, with no required monthly payments. You convert part of your home’s value into tax-free cash, as a lump sum, scheduled advances, or both. Interest is added to the balance rather than billed to you each month, so the amount owing grows over time. The loan is settled (usually from the sale of the home) only when you sell, move out long-term, or after the last borrower passes away.
Every owner on title must be 55 or older, and the home must be your principal residence (lived in at least six months a year). Approval rests on your age, your equity, and the property, not on your income or credit score the way a traditional mortgage does. Property type and location also matter; detached homes in urban centres tend to qualify most easily.
Yes. You keep full title and ownership. The lender simply registers a mortgage against the property, exactly as with a conventional mortgage. You can never be asked to move or sell as long as you keep property taxes and insurance current, maintain the home, and live there as your principal residence.
A line of credit is cheaper, but it requires monthly payments, is income-tested, and is callable. The lender can reduce or freeze it, which is a real risk on a fixed retirement income. A reverse mortgage costs more but requires no payments, qualifies on age and equity rather than income, and can’t be called as long as you meet your obligations. In short: a HELOC optimizes for cost, a reverse mortgage for security.
No. You can still have a mortgage or line of credit on the home. Because a reverse mortgage takes first position, any existing balance is paid off first from the proceeds, and whatever remains is yours to use. For many homeowners, clearing that existing payment is itself the main benefit.
Generally up to about 55% of your home’s value, but that ceiling is reached only at older ages. The percentage rises with age, so a homeowner in their late seventies or eighties can access considerably more of their equity than one in their sixties. The exact figure also depends on your home’s value, type, and location, and on the lender. The estimator above gives an illustrative range; a free assessment gives you the real number across every lender.
No. There’s no requirement to be retired, only that every owner on title is 55 or older and the home is your principal residence. Some homeowners set one up while still working, to fund a goal or hold a reserve, precisely because it doesn’t depend on employment income.
Most standard homes qualify: detached houses, semi-detached, townhouses, and many condominiums, provided the home is your principal residence and in good condition. Some property types (for example, certain rural, leased-land, or manufactured homes) may not qualify or may qualify for less. We’ll tell you quickly how your specific property is likely to be viewed.
Anything you choose. Common uses include supplementing retirement income, renovating or adapting the home, covering healthcare or in-home care, clearing debt to remove monthly payments, or helping children and grandchildren while you’re here to see it. The funds are yours, tax-free, with no restrictions on how you spend them.
You choose. Take a single lump sum, set up scheduled advances (monthly, quarterly, or less often) to supplement your income, or combine an initial lump sum with future advances. Minimums apply and vary by lender. Taking only what you need, rather than the maximum, keeps the balance smaller and preserves more of your equity.
Expect a one-time setup/closing fee, an appraisal (typically a few hundred dollars), and legal fees for closing and your independent legal advice. Most of these are deducted from the proceeds, so there’s little out of pocket. The larger cost over time is the interest, which compounds because you make no payments, which is exactly why structure and lender choice matter. We lay out the full cost, including the APR, before you commit.
Reverse mortgage proceeds are a loan, not income, so they’re generally tax-free and don’t count toward the income thresholds that reduce OAS or GIS. CPP is unaffected. Please confirm your situation with your tax advisor.
No. The reverse mortgages we arrange include a No Negative Equity Guarantee, so you or your estate will never owe more than the home’s fair market value at the time it’s sold, provided loan conditions are met. Your family does not inherit a debt.
There’s no monthly repayment and no fixed maturity date. The loan becomes due when you sell the home, when the last borrower moves out permanently (for example, into long-term care), or after the last borrower passes away. Your estate is typically given a reasonable window to settle it.
Yes, you’re never locked in. If you sell, the loan and accrued interest are repaid from the proceeds and you keep the rest. Some products are portable to a new home if you move, and prepayment charges are reduced or waived on certain products (and in events such as a move to long-term care). It’s a detail worth comparing, and one we factor into the right structure for you.
As long as both spouses are on title as borrowers, the surviving spouse can stay in the home with no repayment required, and the loan simply continues. This is exactly why it’s important that both partners are on title from the start. If a spouse isn’t on title, we’ll walk you through the implications before you proceed.
No. The loan is repaid from the home (usually its sale), and any equity left over passes to your estate. Thanks to the No Negative Equity Guarantee, your heirs will never owe more than the home is worth, and your other assets and their own finances are never on the hook. Your children can also choose to keep the home by repaying the loan from other funds.
More than most people expect. Because lending percentages are conservative and well-located homes tend to appreciate over time, the majority of borrowers still have substantial equity remaining when the home is eventually sold. We model the projected balance against your home’s likely future value so you can see the estate impact clearly, before you decide.
Yes. You remain the homeowner, so you continue to pay property taxes, keep adequate home insurance, and maintain the property in good condition. Meeting these obligations is what keeps the loan in good standing and protects your right to stay.
Yes. Before signing, you (and a spouse who isn’t on title, if applicable) meet privately with a lawyer of your own choosing. It’s there to protect you, confirming you understand the terms and aren’t under any pressure. We can give you a list of local lawyers experienced with reverse mortgages if that helps.
It’s straightforward: we review your goals and compare lenders; you receive an estimate and choose a product; an independent appraiser assesses your home; you meet a lawyer of your choice for independent legal advice; you sign the documents; and the funds are advanced. We guide you through each step and keep your family in the loop if you’d like.
A single lender can only offer you their own product. We compare all four Canadian lenders and structure the option that’s genuinely best for you, and as a CPA & CFA-led firm, we model the decision against your alternatives rather than simply selling a loan.